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Financial Performance Report – Jun 2025 · Financial Performance Report
GENERAL COMMITTEE MEETING 14 JULY 2025
8.1 FINANCIAL PERFORMANCE REPORT – JUN 2025
Author Financial Services Manager, Pauline Coles
Financial Services | Corporate Services Department
Index ECM/ Subject / 22.09 – Monthly Financial Performance Report
Attachments 1. Statement of Income and Expenditure - Jun 2025
2. Statement of Financial Position - Jun 2025
3. Statement of Cashflows - Jun 2025
4. Key Materials & Services Expenditure - Jun 2025
EXECUTIVE SUMMARY
Financial performance for the 2024/25 year has resulted in an interim operating position of $7.3
million, total capital revenue of $66.7 million and base capital expenditure of $27.3 million with
a further $48.5 million expended on QRA funded disaster projects.
Note, these interim 2024/25 financial year results are still subject to year-end financial
adjustments. A further report on the final 2024/25 financial performance will be provided to
Council in November 2025 following the finalisation and independent audit of the financial
statements in October 2025.
YTD Financial Performance Summary
Budget Actual Variance Variance
Status
$m $m $m %
Operating Revenue $141.3 $143.1 $1.8 1.3% Above Budget
Operating Expense $141.2 $135.8 $5.4 3.8% Below budget
Operating Position $0.1 $7.3 $7.2
Capital Revenue $93.4 $66.7 ($26.7) -28.6% Behind Budget
Capital Expenditure* $124.9 $75.7 $49.2 39.4% Below Budget
* Reflects constructed assets and intangibles only (excludes contributed), also includes QRA disaster funded projects,
resulting from the February 2022 flood event.
The $7.2 million full year positive interim operating variance comprises $5.0 million general
operating surplus from activities that are funded through Council’s general rate, regulatory fees
and sales of goods and services; as well as an additional $0.7 million from commercial
operations with Waste operations contributing $0.6 million and a further $0.1 million from Holiday
Parks. A further $1.5 million is contributed from unspent levy and separate charge funds which
are constrained in reserve for future use where they are not fully utilised in a given year.
Budget Variance
Actual YTD
Item YTD YTD
$m
$m $m
General business operating position (unconstrained funds) ($2.7) $2.3 $5.0
Commercial operations (constrained funds) * $3.1 $3.8 $0.7
Unspent levies (constrained funds) ($0.3) $1.2 $1.5
Total Council Operating Position $0.1 $7.3 $7.2
* Includes Waste and Holiday Park operations as shown in the table below
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Page 2
GENERAL COMMITTEE MEETING 14 JULY 2025
Council elects to apply National Competition Policy (NCP) reforms to its Waste Management and
Holiday Parks which provides greater transparency and assists with removing anti-competitive
conduct and ensures the best allocation of Councils limited resources. A summary of the YTD
operational performance of these business activities are outlined below.
Waste Operations Holiday Parks
Budget Actual Variance Budget Actual Variance
YTD YTD YTD YTD YTD YTD
$m $m $m $m $m $m
Revenue 25.8 26.1 0.3 4.3 4.6 0.3
Expenditure 23.4 23.1 0.3 3.6 3.8 (0.2)
Net Operating Position 2.4 3.0 0.6 0.7 0.8 0.1
Financial statements including Statement of Income & Expenditure, Statement of Financial Position
(balance sheet), and Statement of Cash Flows are included as attachments for information for
Council.
Figure 1: Actual Performance Compared to Budget
Council’s interim performance against key measures of financial sustainability has been calculated
as at June 2025. These statutory indicators enable the reader to assess Council’s success in
managing its budget, cash and debt as well as undertaking sustainable asset management. The
table below contains a snapshot of a number of key measures, with full detail included in the report.
YTD Measures of Financial Sustainability
Current
Target Actual YTD Status
Budget
Operating Surplus Ratio 0-10% 0.1% 5.1% On Track
Net Financial Liabilities Ratio <60% (7.0%) (36.2%) On Track
Cash Cover Ratio 3 months 9.5 months 11.1 months On Track
Asset Sustainability Ratio > 90% 116.6% 80.7% Behind Budget
RECOMMENDATION
That Council note the report by the Financial Services Manager to the General Committee
Meeting dated 14 July 2025 outlining the interim 2024/25 full year financial performance against
budget, including changes to the financial performance report with the inclusion of key financial
sustainability indicators.
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GENERAL COMMITTEE MEETING 14 JULY 2025
REPORT
Operating Revenue (YTD Benchmark 100.0%)
Council has received 101.3% ($143.1 million) of its operating revenue budget ($141.3 million).
Commentary on each revenue category is provided below.
Category Summary Comments
Rates and Levies $94.0 million (99.7%) • Waste utility charges $77.1k above FY budget
of the annual budget of (100.0% or $17.1 million of $17.0 million
$94.3 million has been annual budget earned)
earned • General rate (net of discounts) $323.3k below
FY budget (99.5% or $70.9 million of $71.2
million annual budget earned)
Fees and Charges $9.6 million (87.2%) of • Waste $62.4k above FY budget (209.6% or
the annual budget of $119.3k of $57.0k annual budget earned)
$11.0 million has been • Cemeteries $54.6k above FY budget (115.6%
earned or $404.4k of $349.8k annual budget earned)
• Plumbing Compliance $53.2k above FY
budget (103.7% or $1.5 million of $1.4 million
annual budget earned)
• Development Assessment $836.5k below FY
budget (76.7% or $2.7 million of $3.6 million
annual budget earned)
• Local Laws $418.3k below FY budget (80.5%
or $1.7 million of $2.1 million annual budget
earned)
• Building Compliance $262.1k below FY
budget (77.5% or $903.8k of $1.2 million
annual budget earned)
Sale of Goods and $16.5 million (103.4%) • Sports facilities revenue $420.8k above FY
Services of the annual budget of budget (114.1% or $3.4 million of $3.0 million
$15.9 million has been annual budget earned).
earned • Holiday Park revenue $299.9k above FY
budget (106.9% or $4.6 million of $4.3 million
annual budget earned), however any revenue
upside will be generally offset by a
corresponding increase in associated
operating costs
• Waste Management revenue $216.9k below
FY budget (97.2% or $7.5 million of $7.7
million annual budget earned). Sales of
recyclables revenue down due to market
conditions and timing of sales.
Interest Received $6.6 million (178.1%) • Interest revenue has continued to track above
of the $3.7 million budget with investment in higher yielding term
annual budget has deposits maximising the return on surplus
been earned cash holdings. Cash holdings remain high due
to the advanced payment of grants &
subsidies, restricted levy balances, future
provision balances and delays in the delivery
of the capital works program.
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GENERAL COMMITTEE MEETING 14 JULY 2025
Category Summary Comments
Other Revenue $3.4 million (106.3%) • Plant recharge revenue is $120.1k above
of the $3.2 million budget due to internal plant being utilised for
annual budget has the delivery of disaster funded capital projects
been earned • $95.0k recoupment of legal costs from
development assessment appeal
• $92.9k partnership revenue for Cascading
Climate risk project
• Royalty income from landfill gas $21.8k above
budget (137.6% or $79.9k of $58.1k annual
budget earned)
• Recoupment of Waste Bin (SULO) purchases
$62.1k above budget (160.1% or $165.5k of
$103.3k annual budget earned).
• $67.8k proceeds from Insurance claim for
damage to Council property
• Ferry Service revenue $432k below YTD
budget (61.3% or $683.7k of $1.1 million
annual budget earned)
Operating Grants, $7.0 million (98.1%) of • $1.4 million of the FY 2025 financial assistance
Subsidies the $7.1 million annual grant allocation was received in July
budget has been 2024. This is a change from the previous
received approach of prepaying part or all of the grant
in the preceding year.
• Prepayment of the financial assistance grant
has been consistent over the past 7 years
• Council received a 50% prepayment of the
2025/26 financial assistance grant of $884.6k
in June 2025. As a result, funding from the
financial assistance grant is showing $442.9k
over budget for the year. Note however this is
a timing issue only.
• This has been offset by the timing of receipt of
QCoast, Housing Support Program and Flood
Risk Mitigation Program grant funds.
Unitywater On track • Unitywater distributions are fixed each year so
Distributions there is limited budget variance risk
Figure 2: Operating Revenue Position by Type (Excluding Rates)
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GENERAL COMMITTEE MEETING 14 JULY 2025
Operating Expenditure (YTD Benchmark 100.0%)
Actual operating expenditure is currently 96.2% ($135.7 million) of the full year budget ($141.1
million). Detailed commentary for each expenditure category is provided below.
Category Summary Comments
Employee Costs $52.2 million (98.2%) of the • Expenditure for permanent staff salaries
annual budget of $53.1 and wages underspent ($2.5 million) due
million has been expended to position vacancies and the recoupment
of vacancy dividend. This underspend is
offset by additional spend on casual staff
and external labour hire ($1.7 million).
• The renegotiation of the Council's certified
agreement is ongoing, although unions
have agreed in principle to Council’s
Certified Agreement offer. Accordingly,
backpay commencing March 2025
consistent with this offer has been accrued
and is reflected in the interim
results. Noting, that further year end
adjustment and provisions will be
processed as part of Council Annual
Financial Statements.
• Training costs are at $449.8k YTD or
116.5% of the annual budget spent
($386.1k)
Materials and $59.2 million (94.3%) of the • Civil Operations $803.1k above FY budget
Services $62.8 million annual budget (108.7% or $10.1 million of $9.3 million
has been expended. annual budget spent)
• Utilities Management $182.9k above FY
budget (116.3% or $1.3 million of $1.1
million annual budget spent)
• Holiday Parks $129.6k above FY budget
(105.1% or $2.7 million of $2.6 million
annual budget spent) however this is
offset by additional revenue
• Disaster Management $89.9k above FY
budget (245.4% or $151.9k of $61.9k
annual budget spent) This includes costs
relating to local disaster coordination
centre established for Tropical Cyclone
Alfred.
• Fleet $69.7k above YTD budget (104.3%
or $1.7 million of $1.6 million annual
budget spent)
• Strategic Land Use Planning $908.4k
below YTD budget (50.0% or $907.9k of
$1.8 million annual budget spent) $703.1k
relates to grant funded programs yet to be
delivered
• Environmental Services (excluding
environment levy programs) $284.6k
below FY budget (77.5% or $982.1k of
$1.3 million annual budget spent).
• Waste Management $301.1k below YTD
budget (98.0% or $14.5 million of $14.8
million annual budget spent)
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GENERAL COMMITTEE MEETING 14 JULY 2025
Category Summary Comments
• Property and Facilities $251.3k below FY
budget (91.1% or $2.6 million of $2.8
million annual budget spent)
• Corporate Services $172.9k below FY
budget (31.9% or $81.2k of $254.2k
annual budget spent)
• Arts & Culture $207.7k below FY budget
(91.4% or $2.2 million of $2.4 million
annual budget spent)
• Canals & Waterways $162.9k below FY
budget (52.9% or $183.3k of $346.2k
annual budget spent)
• Financial Services $154k below FY budget
(64.11% or $276.4k of $431.0k annual
budget spent)
• Community Development $141.4k below
FY budget (87.6% or $994.2k of $1.2k
annual budget spent) This variance relates
primarily to the timing of the payment of
community grants.
• Buildings & Facilities $139.8k below FY
budget (88.7% or $1.1 million of $1.2
million annual budget spent)
• Development & Assessment $124.8k
below FY budget (90.5% or $1.2 million of
$1.3 million annual budget spent)
• Digital Hub $104.5k below FY budget
(79.9% or $414.1k of $518.5k annual
budget spent) The majority of this
underspend relates to grant funded
projects.
• Levy funded materials & services $1.4m
below FY budget (70.0% or 3.2 million of
$4.5 million annual budget spent) Unspent
levy funds are held in reserve for future
use where they are not fully utilised in a
given year
Finance Costs Currently on track • Whilst existing loan borrowings are set
with fixed interest rates, any further RBA
rate rises will impact finance costs on new
loan borrowings. FY underspend also
relates to the timing of drawdown of
forecast borrowings for FY 2025 and
finalisation of year end adjustments.
Depreciation Currently on track Nil
Other Expenses Currently on track Nil
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GENERAL COMMITTEE MEETING 14 JULY 2025
Figure 3: Operating Expenditure Position by Type
Tourism and Economic Development Investment Summary
Council resolved to report on a monthly basis, investment details for tourism and economic
development. Tourism and economic development activity is funded through the general rates
revenue. Expenditure as of 30 June 2025 is outlined below:
Expenditure YTD Budget YTD Actual Variance
$’000 $’000 $’000
Tourism Noosa Funding Agreement $2,520.0 $2,520.0 -
Economic Development $1,299.3 $1,165.0 $134.3
Total $3,819.3 $3,685.0 $134.3
All instalments payable under the Tourism Noosa agreement for the 2024-25 financial year have
been made. The Tourism Noosa agreement was renewed for 12 months in May 2025 (ending 30
June 2026).
• Employee Costs $21.3k below FY budget (96.7% or $633.4k of $654.6k annual budget spent)
• Materials & Services are $115.0k below FY budget (96.1% or $2.9m of $3.0m annual budget
spent)
Legal Costs Summary
An update on legal costs and associated expenditure is provided on a quarterly basis.
Legal and associated costs are $126.1k over budget YTD (108.9% or $1.5 million of $1.4 million
annual budget spent). Legal and associated expenditure is dependent on the type and specialist
nature of appeals being undertaken and costs and timing may fluctuate as a result.
Full year interim expenditure at 30 June 2025 is outlined below:
Page 8
GENERAL COMMITTEE MEETING 14 JULY 2025 Figure 4: Legal Costs (including legal consultancy) over time Figure 5: Legal Expenditure by Department – 5 year trend Consultancy Cost Summary An update on consultancy costs is provided on a quarterly basis. Consultancy costs are $194.3k over budget YTD (109.3% or $2.3 million of $2.1 million annual budget spent). Consultancy expenditure varies across Council and is generally of a specialist nature to supplement or complement existing resources or is required in order to undertake specific project works, as a result expenditure may fluctuate at different times.
Page 9
GENERAL COMMITTEE MEETING 14 JULY 2025 Figure 6: Consultancy Costs over time Figure 7: Consultancy Expenditure by Department – 5 Year trend Capital Revenue Year to date Capital revenue of $66.7 million received comprises cash contributions from developers ($1.4 million) and capital grants ($63.5million). Note that the timing of capital grant receipts are generally dependent on the timing of grant conditions and also capital delivery performance, and that the timing of the receipt of developer contributions (both cash and contributed) is unpredictable. Grants and subsidies are higher than prior years due to the receipt of funding from the Queensland Reconstruction Authority for reconstruction works relating to the Black Mountain landslip and several other flood impacted sites, which are currently under construction. $27.9 million of the FY capital revenue shortfall relates to QRA disaster funding which is dependent on the timing of delivery and final project costs. Figure 8: Capital Revenue by Type
Page 10
GENERAL COMMITTEE MEETING 14 JULY 2025 Capital Program Actual capital expenditure (excluding commitments and disaster projects) is $27.3 million (YTD budget $46.0 million). Expenditure on disaster projects (excluding commitments) is $48.5 million (YTD budget $78.9 million). Detailed discussion of progress in the delivery of the capital works program is provided through a separate quarterly report by the infrastructure team. Figure 9: Capital Program Delivery Performance Cash Management and Investment Performance Total cash on hand at the end of June was $108.0 million. Included in this balance are funds held in trust and for restricted purposes (e.g. unexpended levy and grant funds), prepaid grants including the financial assistance grant, QRA disaster funding and other capital works grants, prepayment of Waste Levy subsidy (3 years), and unspent monies committed for funding capital projects which are underway and will continue during the financial year. The following pie charts present the mix of cash held at June 2025 by agency (graph on the left) and by credit risk rating (graph on the right). All funds have been invested in accordance with the Investment Policy and in consideration of the principles of ethical investment, preservation of capital, return on investment and counterparty thresholds. Figure 10: Closing Cash Held by Agency and Credit Rating
Page 11
GENERAL COMMITTEE MEETING 14 JULY 2025 The following chart monitors the 12-month trend on total cash and the agencies invested. To maximise the return on in its cash holdings Council has invested $25.8 million in higher yielding term deposits. These investments were made in line with Council’s investment policy. Figure 11: 12 Month Trend of Cash Invested by Agency Quarterly Supplementary Information - Cash Components An update detailing the composition of Council’s cash reserves is provided quarterly. Council’s cash balance comprises a number of components – restricted cash (reserves), committed cash, financial sustainability requirements and unrestricted cash. These are outlined below. Restricted Cash - In accordance with Council’s Management of Restricted Cash Policy, funds are set aside and restricted for a specific purpose. This can be either to meet regulatory requirements, allocate against specific future projects and activities, and to ensure sufficient working capital to meet current and long term financial obligations. Committed Cash - A portion of cash reserves are committed to undertake current year capital works. At the start of the financial year, this commitment will be increased for any unfinished capital works from previous year which are carried over as part of the budget review process to ensure the projects can be completed. Sustainability Requirement – Cash expense cover is a key statutory indicator to measure liquidity, ensure going concern and is a key measure considered in Council achieving its current credit rating (Sound with a Neutral Outlook) to ensure borrowing capacity. Cash expense cover calculates how long Council can continue to pay its day-to-day expenses without needing to seek borrowings or other external funding. A target minimum of three month’s cash cover is to be held in any given financial year to minimise financial risk. Unrestricted Cash – These are funds where there is no regulatory, policy or budgetary commitment to retain funds for specific purposes. These funds can be separated into the following:
Page 12
GENERAL COMMITTEE MEETING 14 JULY 2025
• Working Capital – The cycle of revenue received twice yearly through rates that is held
in the bank and spent over the following six months on operations and capital.
• Long Term Surplus – Uncommitted cash set aside to fund the 10-year capital works
program.
Overall, Council’s $108.0 million total cash balance compromises:
• $49.2 million (45.5%) in restricted cash. This includes unspent levy funds, advance grant
& subsidy payments, developer contributions, natural disaster provision and future landfill
rehabilitation provision
• $15.2 million (14.1%) committed for the delivery of capital works projects
• $29.0 million (26.9%) to meet sustainability requirements, equivalent to 3 months cash
cover.
• $7.7 million (7.1%) in working capital to pay for operations through to the next rating cycle
• $6.9 million (6.3%) in unrestricted free cash, which is the cash available to fund emergent
or new capital works projects. There is no funding to replenish this unless Council
generates a surplus operating position
Figure 12: Allocation of Cash Balances
Measures of Financial Sustainability
The following table incorporates a set of financial sustainability indicators to further assist in
managing Council financial performance. There are no significant emerging risks regarding
performance identified at this stage, however the delay in the delivery of the capital program
may impact Council’s asset sustainability and renewal targets.
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GENERAL COMMITTEE MEETING 14 JULY 2025
Category Comments
Operating Surplus Ratio • Intent: Identifies the extent
to which revenues cover
operational expenses, to
ensure community equity is
not degraded
• Target: Greater than 0%
• Result: 5.1%
• Comment: With the second
rates cycle occurring in
January, this ratio will slowly
decline as expenditure on
operations occurs through to
the end of the financial year
at 30 June 2025.
Cash Expense Cover • Intent: Indicates how long
council can continue paying
its day-to-day expenses
from cash at bank without
needing additional cash
flows
• Target: > 3 months
• Result: 11.1 months
• Comment: Cash cover
remains above target, while
business as usual
expenditure through to 30
June 2025 will degrade
Council’s cash holdings,
albeit not below the target
range of 3 – 6 months.
Cash balances include
funding for capital programs,
unspent grant monies paid
in advance, Waste Levy
subsidy prepayments and
QRA advance payments for
disaster projects which are
restricted for specific
purposes and inflate the
ratio.
Asset Sustainability Ratio • Intent: Measures the extent
to which assets are being
replaced as their condition
degrades to ensure service
potential is maintained
• Target: 80% of depreciation
budget spent on renewals
annually
• Result: 80.7% achieved,
however below forecast
result due to project delays
and scheduling.
• Comment: The ratio
progressively increases
each month as expenditure
on renewals occurs as part
of the capital works program.
For transparency QRA
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GENERAL COMMITTEE MEETING 14 JULY 2025
Category Comments
disaster projects have been
excluded from the ratio
calculations.
Net Financial Liabilities Ratio • Intent: Outlines the level
that net Council debt can be
serviced by operating
revenues. A ratio below zero
implies that liabilities are
less than cash (and other
current assets) and there is
adequate borrowing
capacity available if needed.
• Target: less than 60%
• Result: -36.2%
• Comment: Council has low
debt levels and strong cash
holdings which are reflected
in the annual result.
Investment Return • Intent: Ensure appropriate
return on investment yield
for cash at bank.
• Target: 0.25% above
current Bloomberg
commonwealth 10-year
bond rate yield (4.39%)
• Result: 4.71%
• Comment: Council has
invested surplus cash in
higher yielding term deposits
to maximise
returns. Council’s
investment returns remain
above target.
Rates in Arrears • Intent: Ensuring that the
amount of unpaid rates
remains sustainable and
does not negatively impact
cash flows
• Target: 5% industry
benchmark
• Result: 4.9%
• Comment: Rates arrears
are in line with performance
for the previous 6 and 12
monthly cycles. Recovery
action may be considered
where appropriate.
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GENERAL COMMITTEE MEETING 14 JULY 2025
Link to Corporate Plan
Theme No. 5. - Excellence
This theme focuses on customer experience, financial sustainability, innovation and technology,
levels of service, governance, our employees and volunteers, funding streams and asset
management practices.
Objective 5.2 - Continue to deliver a financially sustainable Council that has the resources now and
into the future to achieve its strategic objectives. This will be supported through the introduction of
enhanced sustainability reporting and performance indicators, as well as ESG (environment social
and governance) accounting practices as guided by statutory requirements.
Previous Council Consideration
Nil
Finance
As above
Risk & Opportunities
Council’s risk register identifies a number of risks that could impact on its ongoing financial
sustainability. In order to manage and mitigate these risks Council uses various tools which include
monthly ongoing financial reporting to identify and address emerging issues, conservative budgeting,
compliance with the Financial Sustainability Policy, regular budget reviews, effective liquidity
management to ensure sufficient fiscal flexibility, as well as adhering to the Reserves and Restricted
Cash policy which requires that Council maintains both a disaster management reserve and a
minimum 3 months cash cover to fund emergent matters.
Some examples of potential risks that may impact on Council’s operational performance, capital
program delivery, cashflow and cash reserves include:
• Substantial damage to or failure of Council infrastructure due to natural disaster or other
emergent issue that may require significant unplanned investment;
• An extended closure of Council facilities impacting operational revenues;
• A prolonged IT system failure affecting Council’s ability to deliver services or issue rates
notices;
• Economic conditions affecting ratepayers’ ability to pay rates;
• Market driven increases in construction and operational costs significantly above estimates;
• Labour and material shortages and delays.
• Fraud attempts may result in financial impacts to Council if funds cannot be recovered
• Reliance on non-recurrent revenue streams (ie interest revenue on grants and short term
cash holdings) to fund business as usual operations may result in higher rate increases in
future years or service level cuts to fund potential shortfalls.
• Strategies, plans and projects deliverables that have not been accurately costed
Page 16
GENERAL COMMITTEE MEETING 14 JULY 2025
Human Rights
Human Rights Compatibility Statement
In developing this Report, the subject matter has been considered in accordance with the
requirements of the Queensland Human Rights Act 2019. It is considered that the subject matter
does not conflict with any human rights and supports a human rights approach to decision making
by Council. Council representatives will endeavour to act and make decisions under this report in a
manner that is compatible with human rights. This report should be read in conjunction with Council’s
Human Rights Policy.
Consultation
External Consultation - Community & Stakeholder
Nil
Internal Consultation
All areas of Council are consulted as part of the regular monitoring of budget performance.
Departments consulted:
Office of the CEO, Mayor & Community Services Corporate Services
Councillors
Mayor & Councillors X Director X Director
X Chief Executive Officer Community Development X Financial Services
Executive Officers Sport & Active Lifestyles Fleet
Community Engagement Arts & Culture Revenue Services
People & Culture Community Connection ICT
Governance Customer Experience Procurement
Commercial Property
Strategy & Environment Development & Regulation Infrastructure Services
X Director X Director X Director
Strategic Land Use Planning Development Assessment Infrastructure Planning, Design
and Delivery
Economic Development & Local Laws Civil and Asset operations
Destination Management
Environmental Services Environmental Health Waste
Innovation & Digital Hub Building & Plumbing Building & Facilities
Property / Permits Disaster Management